Tenants in Florida who are facing eviction due to foreclosure have certain rights and protections under the law. The Tenant Protection Act in the Event of Foreclosure, Article 83.5615 of the Florida Statutes, states that lenders must give tenants a specific period to vacate foreclosed property after the foreclosure sale has been officially completed. This period is at least 90 days, and if the tenant does not vacate within this time, the buyer can file a petition for a possession order in court. In addition, the Act states that those who buy property in a foreclosure sale must give tenants 90 days to vacate the property if the new owner intends to make the property their residence.
If the tenant has signed a new agreement to stay in the premises, they must agree to have local real estate agents show the property, since the mortgage holder will most likely try to market the property for sale. The law also states that the landlord must repay the security deposit even if the property has been foreclosed. However, tenants can only recover this money by filing a lawsuit in small claims court. In some cases, lenders should be aware of their obligations before evicting tenants when foreclosure on a property.
Fannie Mae and Freddie Mac typically hire a local property management company to manage and market their real estate properties (REO) and to determine if a tenant actually resides there. This is beneficial for tenants as it gives them more time to find alternative housing. It is important for tenants to understand their rights when it comes to foreclosure. While it is never a good thing to lose income due to foreclosure on a rental property, there are laws and safeguards in place to protect tenants from being evicted without proper notice or compensation.
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